The Securities and Exchange Commission has intensified its battle against Ponzi schemes in Nigeria, pledging to firmly act against unlawful financial operators and educate the public to stop further victimization.
During an awareness event conducted at the Dei-Dei Building Materials Market in Abuja, the SEC highlighted their dedication to ensuring widespread dissemination of knowledge regarding illicit investment practices among the general populace prior to taking legal action against those involved.
A statement by the Commission said that Executive Commissioner Legal and Enforcement, Securities and Exchange Commission, Ms Frana Chukwuogor who spoke at the event warned of the dangers of patronising illegal fund operators known as Ponzi schemes.
Chukwuogor emphasized that “our aim is to saturate; I love this word ‘saturate,’ as it implies there won’t be any space left for further action.” The focus is on spending time with individuals who have recognized how the threat of Ponzi schemes is pervasive and growing, swindling money primarily from traders in markets.
She mentioned that the Commission considered it essential to visit the Dei-Dei building materials market to educate traders, enabling them to make well-informed choices when faced with investment proposals.
She explained that the campaign is a proactive step to combat the surge in fraudulent investment schemes in Nigeria, aligning with the Commission’s broader strategy to educate the public about Ponzi scheme risks and unregistered investment platforms before enforcing regulatory action.
“Ours is an approach that is straightforward yet resolute,” Chukwuogor stated. “We aren’t merely a regulatory body known for making empty threats. Our strategy involves engagement, education, and empowerment of the Nigerian populace prior to implementing legal measures. We aim to raise awareness before resorting to enforcement actions.”
She explained that too many Nigerians–especially those at the grassroots–fall victim to Ponzi schemes due to lack of information or false promises of quick, unrealistic returns, emphasizing that many of these schemes are not registered or regulated by the SEC, making them dangerous and illegal.
“We’ve witnessed individuals losing their life savings, businesses, and mental tranquility. This is precisely why we’re conveying this message across various marketplaces, motor parks, online platforms— wherever Nigerian citizens are engaging in financial choices. Educating for prevention serves as our primary safeguard,” she concluded.
The Head of the Enforcement Department at the Securities and Exchange Commission, Mr. Abdusalam Sa’ad Khalid, has cautioned that although education serves as the initial measure, the commission will not shy away from prosecuting individuals who persist with fraudulent operations despite warnings.
He encouraged people to confirm any investment opportunities via official sources and inform about dubious activities using the SEC hotline.
Provided by SyndiGate Media Inc.
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